A new regime is coming
In November 2024, the Australian Government passed legislation to expand the country’s anti-money laundering and counter-terrorism financing (AML/CTF) framework. This expansion, known as Tranche 2, is expected to apply to property transactions and a range of professional services.
From 1 July 2026, these rules are scheduled to apply to lawyers, conveyancers, real estate professionals, accountants, dealers in precious metals and stones, and trust or company service providers, subject to the final regulatory framework.
What this means for property transactions
Lawyers and conveyancers who facilitate sales must verify each client’s identity, confirm the legitimacy of funds and lodge suspicious matter reports when required. A designated AML/CTF compliance officer will be required to oversee these processes, as part of an internal compliance program consistent with AUSTRAC standards.
Real estate agents, buyers’ agents and developers will be subject to comparable obligations under the proposed Tranche 2 reforms.
What this means for home purchaser after 1 July 2026
If you plan to buy a home from mid‑2026 onwards, you can expect additional compliance checks during the conveyancing process. Your lawyer or conveyancer must confirm your identity and show that the funds you use come from legitimate sources, so expect to be asked for current photographic identification and clear evidence of savings or loan funds earlier in the transaction.
They are also required to apply risk‑based customer due diligence, which may mean additional questions or document requests where a transaction is large or appears unusual.
Real estate agents, buyers agents and developers face the same obligations. This creates several points in every sale where information can be verified, making it harder for criminals to move illicit funds and giving genuine buyers a more secure settlement environment.
The new compliance regime is expected to take effect from 1 July 2026, applying to property settlements occurring on or after that date, subject to transitional arrangements..
In the long term, stricter verification and monitoring are expected to strengthen confidence in Australia’s property market and deter illegal activity.
Looking ahead
At Migration Affairs, we are committed to staying ahead of regulatory changes to ensure a smooth and stress-free experience for our clients. In anticipation of the upcoming anti-money laundering and counter-terrorism financing reforms, we are proactively taking steps to align our processes with the new requirements. Our goal is to minimise any potential disruptions and ensure your property transaction proceeds as seamlessly as possible.
Changes to the relevant laws can occur without notice. The above information is not intended to be legal advice and is correct as of the date of writing this article.
Contact Migrations Affairs to speak with our experts for tailored advice on your circumstances and eligibility.
